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Culver pledges sweeping spending cuts, no new taxes

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Gov. Chet Culver last night unveiled his plan to cut 6.5 percent in spending from more than 200 state programs to balance the fiscal 2010 budget, while at the same time pledging “we will not raise taxes on Iowa workers during this recession.”

Culver made the announcement at the Hotel Fort Des Moines during the annual meeting of the Iowa Business Council, made up of the chief executives of 19 of the state’s largest businesses, the three state university presidents and the president of Iowa Bankers Association.

“Our state’s sound fiscal management does not mean we can avoid cuts in government spending,” Culver said. “Simply put, just as families and businesses across the state and around the nation are doing more with less, so too must state government.”

Certain key areas, including public safety, workforce development, human services, disaster relief, the teacher quality program and early childhood education, will be spared the full 6.5 percent reductions, Culver told the business group. Additionally, Culver plans to transfer $200 million from the state’s $620 million in reserves.

The cuts proposed are in addition to nearly $180 million in spending reductions proposed by the governor in the current budget. In December, Culver made selective cuts of $40 million, and on Jan. 1 an across-the-board 1.5 percent cut totaling about $90 million went into effect. The governor plans to release complete details of the budget on Wednesday.

Outgoing Business Council Chairman Max Phillips said he appreciates that the governor is making some tough decisions, and is pleased that early childhood education initiatives, now in the third year of a four-year ramp-up, will be spared.

“Certainly discussions about cutting the budget are appropriate, and we have to look at delivering the same services for less cost,” said Phillips, president of Qwest Communications International Inc. for Iowa and South Dakota. “I would be hopeful that the governor will follow through on using Lean Enterprise to do just that, so we continue to save money and make government work.” During the event, Culver recognized the 100th application of Lean process improvement to a state agency, an initiative that began six years ago to make state government more efficient.